Foreign investors demand that the government fix the wastage rate for home-textile and Teri-towel products to remove some hurdles and boost exports, officials say.
In a letter the Foreign Investors Chamber of Commerce and Industry (FICCI) has requested the commerce ministry to take necessary step in this regard, setting off a process of weighing the merit of the matter.
"…There is no specific determined wastage rate for the home-textile and Teri-towel products produced in and exported from Bangladesh," the FICCI letter reads.
The trade body of foreign investors feels that the absence of a particular wastage rate for the two apparel products is creating several problems and challenges in production, export and obtaining government-provided cash incentives.
In its letter the chamber cites that commerce ministry has recently re-determined the wastage rate for the production and export of knitwear--at maximum 30 per cent in Bangladesh.
"Due to the similar nature in production, we believe that the wastage rate of the home-textile and Teri-towel sector may be fixed at the same rate as the knitwear sector (maximum 30 per cent)," the FICCI says.
For this, the chamber has requested the ministry to take necessary steps to re-determine the wastage rate (maximum 30 per cent) for the sector.
The FICCI believes that this initiative will not only increase the production and export of home textile and Teri-towel products but also generate more employments in Bangladesh.
Besides, this initiative will be instrumental in attracting more FDI in home textile and Teri-tower sector in Bangladesh.
"We have received a letter from FICCI and we are now working on the issue," says an official of the commerce ministry.
The ministry has re-fixed the maximum wastage rates upwards for raw materials used in producing readymade garments (RMG), says a sector source.
